In its recent financial report, Ulta Beauty shows record-breaking results for 2021, with sales up 40% and profits up 461%.
The company saw a net profit of $985.8 million over the previous year’s $178 million.
Ulta executives credit the company’s ability to leverage fixed costs, improvements in their merchandise product mix, and hybrid shipping model for the record-setting success. Ulta sells its products through physical stores, online, and other digital channels.
A vital part of Ulta’s omnichannel process is its strategic partnership with Target. One hundred Ulta Beauty at Target stores opened in 2021, and they plan to open over 250 more this year.
The CEO of Ulta Beauty, Dave Kimbell, credits the importance of the brand’s partnership with Target. In addition to having Ulta Beauty stores inside Target, both companies agreed to integrate their loyalty programs, and so far, over one million members have linked the two loyalty programs. As part of its program, Ulta Beauty has 37 million rewards members, and Target has 100 million loyalty members.
To continue driving revenue and meet its financial objectives, Ulta will stay with its six-pillar strategy. The pillars include:
- driving growth with new assortments, added brands, a focus on conscientious beauty programs
- expanding its omnichannel ecosystem
- expanding and deepening its presence across the beauty shopper journey
- driving operational excellence and optimization
- continuing its efforts to make Ulta Beauty a great place to work, and,
- expanding its environmental impact initiatives.